Valuation Executive

Valuating your company is a complex and rigorous process that requires a certified expert.

Valuating your company is a process that requires an expert.

You want a specialized expert, a ninja, someone that’s done the work and fought the good fight so that YOU can benefit. When looking for help in determining your value and how to grow your IT firm, it can be hard to know where to start and who to trust. The valuation process is an unavoidable one if you plan on selling or merging your IT business.

When you’ve spent the past 30 years head down, running your business with your hands deep in the detail guts of it all, it’s important to have an experienced guide to help you pull back and take stock. Because at some point, you’ll want to sell your business so you can move on to the next stage of your life, whatever it is. To do that, you’ll need to prepare in advance.

There’s many value drivers to consider but let’s focus on the top THREE drivers that pose the biggest challenges for ..

Imagine that you’ve made it through all four quarters of the game and you’re on the 1-yard line in selling your business. Then, out of nowhere, the opposing team’s defensive lineman hits you in the gut taking you down, while the rest of their team piles on top of you. You were so close. You didn’t even see them coming. How did this happen (and probably, ouch)?!

The scenario above is similar to what usually happens to most Managed IT Services Providers (MSPs) at some point during the process of selling their business. And it’s brutal.

However, after working with tech firms in the M&A space for over 20 years, I can share with you the top three reasons why 95% of IT business owners get “tackled” when trying to sell and how to prevent it. These top three are working capital, deferred revenue, and misrepresentation.

Working Capital

It’s a struggle to manage cash flow efficiently on a daily basis. As an MSP business owner, your time is limited, and you’re being pulled in a million di..

Why is it that only a handful of businesses are significantly more profitable than others? It isn’t rocket science, yet some companies seem to be light years ahead of their peers. It can be frustrating thinking that you’re doing all the right things (streamlining your processes, reducing operational costs, providing best-in-class services), but then continuing to come up short. Seriously, what must a seller DO to be sought after and worth more in the marketplace?

The good news is that the solution is simple.

The bad news is that the answer takes work.

However, if at the end of the day, you’re looking to maximize your business growth, you’ll need to buckle down and get to work.

Here are the top 5 things that you MUST DO to sell your business and get your fair economic value:

Run a profitable business

Know your business

Track your company’s gross margin correctly

Make yourself expendable

Be humble

We’ll walk you through each item step by step below:

Why is it hard f..

When was the last time you attended a live event? Not a concert or an improv comedy show but a live business event with your peers and industry experts. We’re talking about people who might be more intelligent and experienced than you in your business. It takes a big person to admit they don’t know everything. Additionally, it’s been said that you won’t grow until you’re willing to push yourself towards the other side of fear. Two of our biggest fears are often putting ourselves out there and asking for help for many of us. You could be in the mindset that you don’t know what you’re doing, and it isn’t very comfortable. For others, you might look at it as, “I need to put myself in the room with others doing it at the highest level.” If you’re of the latter, you might want to consider attending a live event if you’re looking to increase your company’s value and eventually sell it.

Reed Warren has been in the M&A industry for over a decade. If there’s one thing he’s learned, collaborat..

Are you ready to sell your IT company? You may have asked yourself the following:

When is the right time to sell? What is my company worth? How long does it take to sell? Should I use a broker?

Linda Rose, Technology M&A Advisor and owner of RoseBiz, suggests considering it sooner than later.

“M&A activity is trending toward an all-time high in the technology space, and with the recent statistics pointing to over 40% of technology firm owners looking to retire in the next 7 years, maybe it is time to think about your own readiness to sell.”

If you’ve been struggling with understanding how to sell your IT business or you’re unsure if now is even the time to consider it, Linda has valuable advice for you.

Why listen to Linda Rose?

She has rich life experience and overwhelmingly high business sales figures to make a statement of her expertise.

Linda Rose has a combined career history of 25 years in accounting, partner channel, and ERP application experience, as well as over ..

As you continue to grow your IT services firm you may be considering the possibility of expanding through a merger or an acquisition.

Even though a merger or acquisition is one of the most unnatural acts in business, finding the right IT firm to merge with or acquire can be a game-changer, opening up new avenues of growth and enhancing your competitive edge.

Here are the top three strategies to finding other IT services firms to pursue.

Networking Inside of the IT Channel: Networking is a powerful tool for connecting with other professionals in the IT services industry. Attend industry conferences and trade shows to meet like-minded individuals and explore potential opportunities for collaboration. Engage in conversations, build relationships, and leverage your network to discover potential merger or acquisition targets.

Professional Associations and Channel Communities: I feel like there’s a million associations, peer groups, and communities in the IT channel to leverage in fi..

Macroeconomics are affecting buyers (and some sellers).

However, many buyers still have access to plentiful amounts of capital, while levels of activity and expenditure are only slightly down from the levels of activity seen in 2022.

TechTarget recently reported that there’s been a dip in M&A activity since the second half of 2022 but is predicting a rebound in 2024 and beyond.

At iT Valuations, we’re seeing activity levels about the same as they were in 2022 with transactions wanting to close quicker than before to avoid fears around taxation and rising interest/borrowing rates.

Here are some key takeaways in the state of the market for IT services firms for 2023 and beyond:

Demand is there but buyers are nervous. There’s still demand for tech owners who want to sell and exit their firms, but many buyers are somewhat concerned about the economic outlook, with increasing interest rates and accelerating inflation the major worries.

Private equity interest in buying tech firms..

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